Carillion collapse hit profits for Aramark’s UK operations

The demise of construction and services giant Carillion contributed to a fall in profits for Aramark’s UK operations, according to financial results published with Companies House. 

In results for the year to 29 September 2017, the catering company reported that the impairment of assets resulting from the Carillion liquidation saw one-off costs of £2.1m.

A further £1.4m of redundancy costs contributed to pre-tax losses of £1.5m, compared to profits of £6.6m the previous year.

Turnover for the company, which operates in the business and industry (B&I), education, healthcare, defence, judicial and offshore sectors, fell to £272.5m, compared to £292.6m the previous year.

Gross profits were at £54.4m, down on the previous year’s £58.3m.

Within the results the company said it was focused on promoting efficiencies and driving out unnecessary costs.

Earlier this year Aramark announced an exclusive 10-year deal with the Jamie Oliver Group, as it looks to expand its B&I operations in the UK. The deal will allow it to offer all Jamie Oliver concepts within workplaces.

The final 278 Carillion contracts have been transferred, it was announced this week, with the focus now shifting to making payments to suppliers and investigating the causes of the company’s failure as well as the conduct of its directors.

Source: click here